CONCORDIA annual report 2018
CONCORDIA pays out entire surplus earnings to the insureds

Annual Report

The year 2018 was exceptional for CONCORDIA in financial terms. The cost of benefits per capita in Mandatory Health Care Insurance has fallen. This has led to extraordinarily high surplus earnings of CHF 157 million. As a non-profit association, CONCORDIA passes on the entire surplus earnings to its insureds.

The so-called negative price increase of 2.1% was not foreseeable. It led to a significant surplus of premiums in comparison to benefits in the Mandatory Health Care Insurance of CONCORDIA despite a negative investment result. In this case, the Swiss Health Insurance Supervision Act (KVAG/LSAMal/LVAMal) allows health insurance providers to reimburse their insureds one time from the result achieved in the previous financial year. As a non-profit association and due to its financial health, CONCORDIA will pay back in 2019 its premiums collected in excess to those with basic insurance.

For this reason, persons insured by CONCORDIA in 22 Swiss cantons will benefit from a premium equalization of CHF 108 million for the first time in 2019, in addition to the payment of reserves amounting to CHF 55 million already under way (this premium equalization is subject to the approval of the Swiss Federal Office of Public Health (BAG/OFSP/UFSP). The repayment occurs within the framework of Art. 17 and 18 KVAG/LSAMal/LVAMal and is calculated individually for each canton. The amount that is refunded depends on the premium surplus of the respective canton and ranges between CHF 50 and CHF 610 per adult with basic insurance.

With invoice verification and benefits management, CONCORDIA was able to save CHF 328 million last year. At the same time, regarding the insurances pursuant to the Swiss federal law on health insurance (KVG/LAMal), only 4.6 Swiss centimes from each premium franc were expended for administrative costs; the remainder was used in the form of benefits paid to the insureds.

In addition, CONCORDIA was able to welcome 14,000 new insureds alone to the basic insurance scheme.

CONCORDIA Swiss Health and Accident Insurance Ltd and CONCORDIA Insurances Ltd: key figures for the 2018 financial year                                                                                               
Persons with basic insurance in Switzerland and Principality of Liechtenstein as of 1.1.2019 632,000
Employees 1,200
Agencies and branches 200
Administrative costs for Mandatory Health Care Insurance 4.6 %
Result CONCORDIA Swiss Health and Accident Insurance Ltd before provision for payment to the insured persons CHF 157m
Result CONCORDIA Insurances Ltd CHF 60m
Premiums earned across all classes of insurance CHF 2.8bn
Benefits paid out  CHF 2.4bn
Combined ratio KVG/LAMal 96.6 %
Combined ratio VVG/LCA 86.7 %

Additional Information